Technical Due Diligence - Acquisition of Embedded Gas-Fired Power Plants

The UK’s Clean Power 2030 initiative targets 95% clean electricity, leaving 5% for unabated gas generation. Gas fired peaking plants remain essential for fast-response, firm power, supporting grid stability and multiple market mechanisms, including wholesale electricity, ancillary services, and the Capacity Mechanism (CM).

A client was offered the acquisition of seven gas peaking sites (5–9MWe each, 50MWe total). These containerised power plants, powered by proven OEM engines, offered immediate market participation but required assessment of risks and asset health.

To conduct technical due diligence enabling a Final Binding Offer (FBO) by identifying operational, maintenance, and compliance risks, and assessing long-term viability of the assets.

F&H Power Consultants carried out site inspections, operational data analysis, and document reviews for all seven sites. Both primary generating assets (gen-sets) and Balance of Plant (BOP) systems, including fire and gas detection, electrical systems, and ancillary support were thoroughly evaluated. Collaboration with the seller’s team secured access to maintenance and performance records.

Risks were categorised by severity (Low/Medium/High) across mechanical performance, operational reliability, maintenance needs, and compliance. Obsolescence risks were noted, alongside upgrade opportunities for emissions and flexibility.

The due diligence enabled accurate valuation, informed bidding, insight into asset health, and prioritised maintenance investment, helping the client develop a robust, risk-adjusted acquisition strategy.

Through structured technical assessments, the client proceeded confidently with acquisition, minimising investment risks and ensuring the long-term value of the gas-fired assets.